Irwin Jacobs Sells Remarketing Biz for $140M
Minnesota businessman Irwin Jacobs has sold the consumer goods remarketing portion of his Hopkins-based Jacobs Trading Company for $140 million.
The business was sold to Liquidity Services, Inc., a Washington, D.C.-based surplus goods dealer.
Under the terms of the cash-and-stock deal, which is expected to close on October 1, Liquidity Services will pay an additional $30 million if the unit meets certain goals, the company said in a news release.
Liquidity Services will retain the team currently running the Jacobs unit. The remarketing unit reported $65.3 million in revenue last year and earnings of $18.3 million, Liquidity Services said. The deal expands Liquidity Services' existing relationship with Wal-Mart, as the business handles returns and damaged and obsolete goods for Wal-Mart and other retailers, according to a report by the Star Tribune.
Jacobs told the Minneapolis newspaper that Liquidity Services indicated interest in the business four years ago, but he didn't want to sell at that time. Now, he says it's a win-win, and “gives the company an opportunity to grow.”
To learn more about the deal, read the full Star Tribune story here.